RBZ re­leases bond notes into mar­ket to­day

Chronicle (Zimbabwe) - - Front Page -

of US dol­lars and bond notes and coins. The in­tro­duc­tion of bond notes is a cor­rec­tive mea­sure to en­sure that a smaller trader is not in­con­ve­nienced by the un­avail­abil­ity of notes and coins,” he said.

“Bond notes will not be given to ex­porters di­rectly, but the Re­serve Bank of Zim­babwe will de­posit them into the United States dol­lar ac­counts of the ben­e­fi­ciary ex­porters.”

The past pres­i­dent of the Zim­babwe Na­tional Cham­ber of Com­merce, Mr Luxon Zembe, said mon­e­tary au­thor­i­ties should stick to their prom­ise that there will be no print­ing of more bond notes which will im­pact neg­a­tively on in­fla­tion.

He said if the RBZ man­ages the bond notes well, ev­ery­thing would go ac­cord­ing to plan.

“The fear that peo­ple have is not about the bond notes them­selves but the fear is about the abil­ity of the mon­e­tary au­thor­i­ties to man­age their cir­cu­la­tion by not print­ing more of them which will im­pact neg­a­tively on in­fla­tion. If in­fla­tion starts ris­ing that will have neg­a­tive im­pli­ca­tions on peo­ple’s wealth as their wealth will get eroded,” Mr Zembe said.

Dr Man­gudya is on record as say­ing the bond notes, which are guar­an­teed by a $200 mil­lion Africa Ex­port Im­port Bank (Afrex­imBank) fa­cil­ity, will see about $75 mil­lion worth of the sur­ro­gate cur­rency be­ing re­leased into the econ­omy.

Op­po­si­tion par­ties and or­gan­i­sa­tions such as #Ta­ja­muka and other civic groups have of late been at the fore­front of try­ing with­out suc­cess, to mo­bilise or­di­nary ci­ti­zens to re­sist the in­tro­duc­tion of bond notes through mass protests and court chal­lenges.

Pres­i­dent Mu­gabe gazetted Statu­tory In­stru­ment 133 of 2016 which pro­vides a le­gal frame­work for the in­tro­duc­tion of bond notes as ac­cept­able le­gal ten­der in Zim­babwe.

SI 133 of 2016 Pres­i­den­tial Pow­ers (Tem­po­rary Mea­sures) Amend­ment of the Re­serve Bank of Zim­babwe Act, em­pow­ers the cen­tral bank to is­sue out bond notes us­ing its pre­ferred de­sign, form and ma­te­rial.

As part of its con­sti­tu­tional obli­ga­tion to fa­cil­i­tate public con­sul­ta­tion in the leg­isla­tive and other pro­cesses of Par­lia­ment, the Port­fo­lio Com­mit­tee on Fi­nance and Eco­nomic De­vel­op­ment is invit­ing all rel­e­vant stake­hold­ers and mem­bers of the gen­eral public to sub­mit com­ments to Par­lia­ment on this Re­serve Bank of Zim­babwe Amend­ment Bill. The com­mit­tee will also con­duct public hear­ings coun­try­wide be­gin­ning to­day. — @ okazunga — @mash­nets

See Com­ment on Page 4

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